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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

Read more

Industry News

Consumer Advocates Ask Iowa Regulators to Limit Interstate Rates

LCG, September 19, 2002-The OCA, Iowa's consumer advocate, has requested that electricity regulators lower annual rates by $22.4 million.

After inspecting financial information of Alliant Energy Corporation, parent to Interstate Power & Light Company, consumer advocates found that utility assets were used as the guarantee on $952 million borrowed by a separate Alliant Energy subsidiary.

The OCA has said that the holding company would have the capability of using Interstate Power & Light's capital to benefit shareholders by improving electricity rates for itself. The OCA believes that any benefits should be passed on to ratepayers, who financed asset purchases in the first place. Therefore, OCA has requested that Iowa regulators limit Interstate Power & Light's rates, as opposed to allowing the $82 million rate increase that the company requested previously.

Interstate Power & Light finds the logic requisite of a "leap," noting that ratepayers do not take investment risks like shareholders and that any revenue reduction would be seriously harmful to the utility.

A hearing has been planned for October 22.

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